Everybody’s waiting outside with their wallets wide open for the big drop of helicopter money to come falling through the sky. But will they even get a stimulus check? We need to dig deeper on the facts.
The Reason
Think of these stimulus checks as a “gift” from the government. It doesn’t happen often and one must wonder what they want in return. The money is expected to alleviate the nationwide stress from the current pandemic, coronavirus. With all the craziness going on from being in quarantine to homeschooling children, it’s nice to know the government cares for everybody right?
Not so fast. The $1,200 checks will not be sent to everyone and their mama. Actually people’s’ mama will probably get one and not their heirs.
A Simple Breakdown
Your check is set to arrive automatically under certain conditions:
- Single filers with an AGI (adjusted gross income) below $75,000 will receive $1,200
- $2,400 for married filing jointly with a combined AGI below $150,000
- For every dependent under 17 years old, you’ll receive $500
There are a few caveats though. For single and married filers, every $100 you make over the AGI threshold reduces your check by $5. So single people who make over $99,000 and married couples who make over $198,000 will NOT receive a check. Guess it pays off that Mrs. Simple FI doesn’t work. Dependents older than 16 years will NOT receive a check either.
Your income will be based on either a) your 2019 tax return, if you filed it already or b) your 2018 tax return. The IRS has postponed all 2019 tax returns to July. So if you made more in 2019, wait for your check to arrive first then file your tax return.
What is Mr. Simple FI doing with his check?
I should fund a trip to Tokyo Disney Sea or maybe buy a roundtrip for my family and fly back home to Hawaii or even pick up a new pair of Yeezies (sp?). While those ideas are awesome and probably the exact intention behind the check, I’ve got a different plan. But seriously, I deserve to splurge on myself after my family has been in quarantine for three weeks right? Nah, this baby is going straight into our Simple FI Emergency Fund.
When this crisis hit, I was almost caught with my pants down. Like to my ankles down. The past two months were busy for the Simple FI Family. I changed jobs, moved our family to a different country, and put a substantial down payment on a rental property. Oh and my plan to have our primary home rented during that time? Yeah that didn’t happen. But nonetheless, thanks to a large amount of cash reserves, we weathered the storm. Not this time Murphy, you’ll have to yank my pants down another day.
Since I’m an exceptional essential employee, my work hours haven’t changed and my income hasn’t decreased. Guess the saying “Don’t put all your eggs in one basket” holds true for our cash reserves too. No one knows what the future holds so diversifying our reserves rather than relying on one source of income plays a huge role when an emergency actually happens.
“Anything that can go wrong, will go wrong.” – Murphy
“Unless you have a fat emergency fund, you’ll be FIne.” – Mr. Simple FI